Finance News - News Home Credit Card News Banking News Loans News Insurance News Investments News News Archive Finance News Search

Finance News

Compare Credit Cards

Compare Banking

Compare Loans

Compare Insurance

Investment Providers

Advertisements
    Allianz Insurance - click here

NAB breaks away from Reserve and ups loan rates

NAB breaks away from Reserve and ups loan rates

Related articles

Date Published : Friday, January 04, 2008

One of Australia's largest banks has raised its interest rates away from the national rate set by the treasurer.

National Australia Bank (NAB) has increased its interest rates on personal loans and home loans by 0.12 per cent to 8.69 per cent, adding $20 a month to a $250,000 mortgage.

It is the first time for over a decade that a major Australian bank has moved away from the stance of the Reserve Bank.

The NAB has defended the move, stating that the rise will cover costs incurred since August 2007 and stabilise it from any effects of the global credit crunch.

NAB executive director Ahmed Fahour said: "Over the past five months wholesale funding costs have increased on average by 0.2 per cent to 0.3 per cent. In December these cost increases averaged 0.3 per cent to 0.4 per cent.

"While this change will not recoup the full impact of increased wholesale funding costs NAB has a responsibility to balance the needs of customers and shareholders."

However, treasurer Wayne Swan has urged other banks to think of families with personal loans and home loans before copying the NAB's move.

According to the Adelaide Advertiser, Mr Swan said: "This rate rise announced by the NAB is a direct consequence of the sub-prime mortgage crisis in the United States.

"But I would still urge all of the banks to be very mindful of the significant financial pressures on families when making decisions in these matters."

Mr Swan added that while turbulent conditions may continue over the coming year, any federal decision on interest rates would reflect this.

Find and apply online for loan deals.ADNFCR-1411-ID-18414414-ADNFCR

 

 

 

Latest Money News from Money-Au.com.au

  • Finance News
  • Credit Cards
  • Banking News
  • Loans News
  • Insurance News
  • Investments News
Advertisements
St.George Bank - click here   iSelect - click here